Bitcoin crossed $61,000 early on Tuesday, following the second-highest inflow activity of the month into U.S. spot exchange-traded funds (ETFs) holding the cryptocurrency.
SoSoValue data highlighted that net inflows into Bitcoin spot ETFs totaled over $61 million, the most since August 8, when they received $192 million. Bitwise’s BITB saw outflows of $25 million, while BlackRock’s IBIT led inflows with $92 million.
The prized digital asset surpassed the crucial $60K mark today after several days of parabolic trading. Technically, crossing the $60K threshold is significant. As of this writing, the cryptocurrency is approaching the pivotal 200-day moving average, which is situated at roughly $63K and moving closer to $61K. If the price can break above this level, it could encourage traders and rekindle expectations of a prolonged advance.
In the meantime, the abrupt change has led to a surge in liquidations, wiping out holdings in derivatives worth over $100 million in the past day.
As of Tuesday, there are still very few market catalysts. However, some traders anticipate market swings closer to Friday, when Jerome Powell, the Chair of the Federal Reserve, is expected to speak at the Jackson Hole conference. Powell is anticipated to confirm a shift toward lower borrowing costs next month. This move has typically boosted traders’ optimism, as easy access to capital encourages growth in riskier industries. However, some remain pessimistic about the decision to rescind proposed Bitcoin ETF options.
Bitcoin’s Outlook
Bulls have a case if Bitcoin recovers to $62K or the 61.8% Fibonacci retracement level. This would form a critical resistance zone in alignment with the previously broken trendline and the 100-day Exponential Moving Average, which is currently around $62,226. In this scenario, Bitcoin may face some difficulty. There could be a drop to $57K and a potential 19% decrease back to the $49.9K daily support level if $62,066 is not exceeded.
However, if Bitcoin’s price can close above $62,066, a move toward the high of $65,596 on August 2 would be anticipated. This could lead to a further 6% rise in price and a test of the weekly resistance level at $69.6K.
Norway currently indirectly owns 2,446 BTC through its investments in cryptocurrency stocks. News like this is promising for Bitcoin, painting a favorable picture of broad government support for its value.
